An Increasing Inventory Turnover Ratio Indicates

question 53

Multiple Choice

An increasing inventory turnover ratio indicates:

• A) a longer time span between the ordering and receiving of inventory.
• B) a shorter time span between the ordering and receiving of inventory.
• C) a shorter time span between the purchase and sale of inventory.
• D) a longer time span between the purchase and sale of inventory.

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Definitions:

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity.

Deming

Refers to W. Edwards Deming, an engineer, statistician, and management consultant known for his work in quality management and productivity improvement.

Autocratic Organizations

Organizations characterized by centralized decision-making, where control is exercised by a single leader, leading to quicker decision-making but potentially lower employee morale.

Deming Management

A comprehensive management approach proposed by W. Edwards Deming, focusing on quality improvement, increased productivity, reduced costs, and customer satisfaction through statistical methods.